News Room

To reach a member of the corporate communications department directly, members of the press are invited to call either (717) 975-5718 or (717) 975-5713. You can also find recent Rite Aid press releases below.

Longs to Purchase 38 Rite Aid Stores in California


WALNUT CREEK, CA (September 15, 1999) --- Longs Drug Stores (NYSE: LDG) and Rite Aid Corporation (NYSE, PSE: RAD) today announced they have signed a purchase agreement by which Longs will acquire 38 of Rite Aid's stores in California. Under the terms of the transaction, Longs will pay approximately $186 million for the inventory and fixed assets of these stores.

The transaction has been approved by the boards of directors of both companies and is subject to regulatory approval. Completion of the transaction is anticipated by the end of October.

The 38 Rite Aid Stores being acquired by Longs are located throughout California and average 34,000 square feet. Five are in the greater Los Angeles area and the remaining thirty three are located throughout Northern California.

Commenting on the acquisition, Steve Roath, Longs' President said, "This acquisition will help fuel our growth, generate significant synergies, build long-term shareholder value and solidify our market leadership position in the West. Each of these stores complements our existing strong market share and is of competitive and strategic importance to us."

Timothy J. Noonan, President of Rite Aid, said of the transaction, "Our expertise is operating smaller traditional drugstores. This transaction will allow us to divest some of the larger former PayLess stores which have not been meeting our financial goals and are not consistent with our long-term strategic plan." Rite Aid acquired the 38 stores as part of its acquisition of the Thrifty PayLess chain in December 1996.

Upon completion of the transaction, Longs will operate approximately 420 stores in six western states. Rite Aid, the nation's third largest pharmacy chain, will have approximately 3,800 stores in thirty states and the District of Columbia, with 608 stores remaining in California.

Longs intends to finance the purchase with existing cash and additional debt. "Utilizing our very strong balance sheet has allowed us to make this strategic acquisition and add to our sales and earnings growth, " said Longs' vice president and treasurer, Clay Selland. Morgan Stanley Dean Witter provided Longs with financial advisory services concerning this acquisition.

Longs Drug Stores is one of the largest drug store chains in North America. Longs currently operates 381 stores in California, Nevada, Colorado, Hawaii, Washington and Oregon with annual sales averaging over $8.7 million per store. Longs' web site blends consumer services and health-related information with a variety of data about the company. Longs' community health screening schedules, on-line prescription refills and pharmacist access, coupons, a monthly health topic, and the latest company news and investor information are regular features of the site which is located on the Internet at www.longs.com.

Rite Aid Stores to be purchased by Longs

San Francisco/Bay Area

     

City

State

Address

Shopping Center

BRENTWOOD

CA

1175 2ND STREET

BRENTWOOD TOWN CENTER PLAZA

CONCORD

CA

4424 TREAT BLVD.

BEL-AIRE SHOPPING CENTER

DUBLIN

CA

7201 REGIONAL STREET

DUBLIN SHOPPING CENTER

EL CERRITO

CA

10650 SAN PABLO AVENUE

MOESER LANE CENTER

MENLO PARK

CA

625 EL CAMINO REAL

 

MOUNTAIN VIEW

CA

1040 GRANT ROAD

GRANT ROAD CENTER

NAPA

CA

675 TRANCAS STREET

SILVERADO PLAZA

NEWARK

CA

35080 NEWARK BLVD.

ROSEMONT SQUARE

OAKLAND

CA

5100 BROADWAY

ROCKRIDGE SHOPPING CENTER

PETALUMA

CA

365 E. WASHINGTON STREET

LAKEVILLE CENTER

SAN JOSE

CA

3171 MERIDIAN AVENUE

HACIENDA GARDENS S/C

SAN JOSE

CA

1097 LEIGH AVENUE

 

SAN JOSE

CA

5285 PROSPECT ROAD

 

SAN PABLO

CA

800 SAN PABLO TOWN CENTER

 
       

Sacramento Area

     

City

State

Address

Shopping Center

CAMERON PARK

CA

3500 PALMER DRIVE

 

ELK GROVE

CA

8585 ELK GROVE BLVD.

ELK GROVE VILLAGE

ELK GROVE

CA

5040 LAGUNA BLVD

LAGUNA CREEK TOWN CENTER

GALT

CA

1063 C STREET

GALT PLAZA

ORANGEVALE

CA

8861 GREENBACK LANE

 

POLLOCK PINES

CA

6450 PONY EXPRESS TRAIL

 

ROCKLIN

CA

4785 GRANITE DRIVE

ROCKLIN SQUARE

RANCHO CORDOVA

CA

2668 ZINFANDEL DRIVE

ROSS PLAZA

SACRAMENTO

CA

980 FLORIN ROAD

LAKE CREST SHOPPING CENTER

SACRAMENTO

CA

1587 W. EL CAMINO AVENUE

STONECREEK SHOPPING CENTER

TRACY

CA

1122 W. 11TH STREET

WESTGATE PLAZA

       

Southern California

     

City

State

Address

Shopping Center

HEMET

CA

110 EAST STETSON AVENUE

 

HEMET

CA

43418 FLORIDA AVENUE

MOUNTAIN VIEW PLAZA

LAGUNA NIGUEL

CA

30261 GOLDEN LANTERN

 

LOS ANGELES

CA

8490 BEVERLY BLVD.

BEVERLY CONNECTION

MANHATTAN BEACH

CA

1570 ROSECRANS BLVD.

MANHATTAN MARKETPLACE

       

Other

     

City

State

Address

Shopping Center

ARCATA

CA

600 F STREET

UNIONTOWN SHOPPING CENTER

CHICO

CA

720 MANGROVE AVENUE

PARK PLAZA

FRESNO

CA

7057 N. MARKS AVENUE

SUNSET SQUARE

MARINA

CA

268 RESERVATION ROAD

SEACREST PLAZA

SALINAS

CA

1140 S. MAIN STREET

THE PLAZA SHOPPING CENTER

SALINAS

CA

17579 VIERRA CANYON ROAD

PRUNETREE SHOPPING CENTER

VISALIA

CA

1455 E. NOBLE AVENUE

MARY'S VINEYARD

WATSONVILLE

CA

1966 MAIN STREET

WATSONVILLE SQUARE

 

____________________

Contact:

Longs Drug Stores
MEDIA AND INVESTORS: Clay Selland, 925/210-6624

Rite Aid Corporation
MEDIA: Karen Rugen, 717/730-7766 or Sarah Datz, 717/975-5718
INVESTORS: Douglas Wilburne, 717/214-8835